Share of Torrent Power jumped over 5 percent to hit a fresh 52-week high of Rs 385.45 apiece on the BSE. The stock price surged after the power company emerged as the highest bidder for the privatisation bid of distribution in the Union Territories of Dadra & Nagar Haveli and Daman & Diu.
In a regulatory filing, Torrent Power said that the acquisition of 51 percent stake in the power distribution company by the company is subject to further formalities as prescribed under the tender documents.
“The Bidding for the Distribution Business of the UT has been undertaken as part of the Government of India’s initiative to privatize distribution utilities of Union Territories to usher in efficiency, which will provide a model for emulation by other utilities across the country,” Torrent Power said.
With the addition of Dadra & Nagar Haveli (including Silvasa) and Daman & Diu, Torrent will distribute nearly 25 billion units to over 3.8 million customers and cater to a peak demand of over 5000 MW, it added.
“With this acquisition, Torrent will be entrusted with the responsibility to distribute over 25 billion units of power, which is equivalent to around 2 percent of India’s total power consumption.